Advance Auto Parts, Inc. (NYSE:AAP) Receives Consensus Recommendation of “Reduce” from Brokerages

Shares of Advance Auto Parts, Inc. (NYSE:AAP) have been assigned a consensus recommendation of “Reduce” from the twenty-two ratings firms that are currently covering the firm, Marketbeat.com reports. Three analysts have rated the stock with a sell recommendation, seventeen have given a hold recommendation and two have issued a buy recommendation on the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $52.9311.

A number of equities research analysts have recently commented on AAP shares. Morgan Stanley set a $60.00 target price on Advance Auto Parts in a research report on Tuesday, February 17th. Northcoast Research upgraded Advance Auto Parts from a “neutral” rating to a “buy” rating and set a $55.00 price objective on the stock in a report on Wednesday, January 21st. Weiss Ratings reiterated a “sell (d)” rating on shares of Advance Auto Parts in a report on Wednesday, January 21st. BMO Capital Markets lifted their price objective on Advance Auto Parts from $55.00 to $60.00 and gave the stock a “market perform” rating in a report on Tuesday, February 17th. Finally, Roth Mkm reiterated a “neutral” rating and issued a $57.00 price objective on shares of Advance Auto Parts in a report on Thursday, February 19th.

Institutional Investors Weigh In On Advance Auto Parts

Several institutional investors have recently bought and sold shares of the company. Savoir Faire Capital Management L.P. lifted its stake in Advance Auto Parts by 11.4% in the 3rd quarter. Savoir Faire Capital Management L.P. now owns 226,990 shares of the company’s stock worth $13,937,000 after purchasing an additional 23,172 shares in the last quarter. Federated Hermes Inc. lifted its stake in Advance Auto Parts by 12.8% in the 3rd quarter. Federated Hermes Inc. now owns 2,694,027 shares of the company’s stock worth $165,413,000 after purchasing an additional 306,702 shares in the last quarter. CSM Advisors LLC lifted its stake in Advance Auto Parts by 71.6% in the 3rd quarter. CSM Advisors LLC now owns 89,867 shares of the company’s stock worth $5,517,000 after purchasing an additional 37,486 shares in the last quarter. Roberts Wealth Advisors LLC purchased a new position in Advance Auto Parts in the 3rd quarter worth approximately $1,996,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in Advance Auto Parts in the 3rd quarter worth approximately $1,840,000. 88.70% of the stock is currently owned by institutional investors and hedge funds.

Advance Auto Parts Price Performance

NYSE:AAP opened at $59.44 on Thursday. Advance Auto Parts has a 52 week low of $30.84 and a 52 week high of $70.00. The company has a quick ratio of 0.87, a current ratio of 1.75 and a debt-to-equity ratio of 1.55. The stock has a market capitalization of $3.59 billion, a PE ratio of 81.42, a price-to-earnings-growth ratio of 1.04 and a beta of 1.04. The stock’s 50-day moving average price is $53.63 and its 200-day moving average price is $50.32.

Advance Auto Parts (NYSE:AAP) last posted its earnings results on Friday, February 13th. The company reported $0.86 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.45. Advance Auto Parts had a return on equity of 6.23% and a net margin of 0.51%.The firm had revenue of $1.97 billion for the quarter, compared to analysts’ expectations of $1.95 billion. During the same period last year, the firm earned ($10.16) EPS. The company’s quarterly revenue was down 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. As a group, equities analysts expect that Advance Auto Parts will post 2.74 EPS for the current fiscal year.

Advance Auto Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.7%. The ex-dividend date is Friday, April 10th. Advance Auto Parts’s payout ratio is presently 136.99%.

About Advance Auto Parts

Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.